Bona Film Group Beats Expectations But Takes A Step Back Anyway

Bona Film Group (Nasdaq: BONA  ) reported earnings on Nov. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Bona Film Group missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share shrank significantly.

Margins shrank across the board.

Revenue details
Bona Film Group recorded revenue of $24.6 million. The four analysts polled by S&P Capital IQ anticipated revenue of $26.9 million on the same basis. GAAP reported sales were 34% lower than the prior-year quarter's $37.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.09. The three earnings estimates compiled by S&P Capital IQ averaged $0.04 per share. GAAP EPS of $0.02 for Q3 were 85% lower than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.6%, 340 basis points worse than the prior-year quarter. Operating margin was 3.3%, 1,860 basis points worse than the prior-year quarter. Net margin was 5.3%, 1,460 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $70.2 million. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $166.8 million. The average EPS estimate is $0.35.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with nine members out of 28 rating the stock outperform, and 19 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), three give Bona Film Group a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bona Film Group is outperform, with an average price target of $7.03.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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